Fannie Mae-No Politics (FNMA)

[kthomp19]

In terms of a legal fiduciary duty to taxpayers, I concede the point that Treasury doesn't appear to have an official one. But in the end there is no de facto difference between Treasury having a binding legal obligation to minimize taxpayer losses and them always having acted as if they do. And that is what should guide FnF investors' expectations as to how Treasury will act in the future. My overall point stands.

Treasury writing off the seniors for nothing in return would result in a $220B loss to taxpayers. There is nothing in the law or in past Treasury actions that would give any real reason to believe they would do that.